Chapter 196: Responses of Large-scale Seed Enterprises
Mu premium is not an insurance fee, but the expected average income per mu of seed production.
In 2023, the premium per mu in Hexi will reach a maximum of 4,500 yuan per mu. Counting other expenses, the cost of seed production per mu will exceed 5,000 yuan.
But in 2005, the insurance premium per mu in the Hexi Corridor remained at the level of 1,200 yuan to 1,500 yuan.
Generally speaking, the price that seed companies purchase corn from farmers is 2.5-4 times that of commercial corn.
For example, the current price of corn is 0.5 yuan per catty, and the purchase price is 1.25-2 yuan. The ratio of domestic seed sales price to purchase price is about 5:1, and the pricing ratio of foreign corn seeds is 30:1.
So the price of domestic corn seed companies is basically around 5-10 yuan per catty, and dealers will increase it by 20%-30% or even higher on this basis.
Calculated, the profits of corn seeds for large seed companies such as Jingcheng Denong and Denghai can reach 50%, while the profits of small seed companies are 20%-30%.
Tianhe’s profit margin this year is between 60% and 70%, but this takes into account all the costs Tianhe has paid this year.
The expansion of the seed production base from 20,000 acres to 100,000 acres is not a simple superposition of numbers.
Supporting drying equipment, workshops, seed processing production lines, storage warehouses, seed distribution, etc. all require costs.
Tianhe's marketing network has also been expanded from the original A and B markets to Shandong, Hebei and other provinces, and currently has achieved full coverage of 15 provinces in A and B categories.
Category C random market also has local customers who choose to purchase goods in cash.
Six to seven hundred county-level agents, tens of thousands of township agents, and hundreds of Denong agricultural supplies supermarkets in Shandong Province.
Tianhe's marketing personnel are located all over the country. Despite the high marketing costs, Tianhe's profit margin still reaches 60 to 70%.
This is also the data released by Tianhe.
But the real profit rate of Tianyu No. 1 is definitely a huge profit of more than ten or twenty times.
So, increasing the insurance premium by 20% is just scratching an itch for Tianhe.
If it weren’t for other large-scale seed companies and the government’s strong intervention after disrupting the market, Tianhe could have done even better.
But even 20% is enough to scratch the ears and cheeks of small corn seeds.
...
Tianhe’s field demonstration meeting realized the entire process of technical services from soil preparation and sowing to plant protection and harvest demonstration, which is the first time in the domestic market.
Last year there were few demonstration sites and only attracted the attention of a small number of companies.
But this year Tianhe’s field demonstration sites have been expanded to more than 600, and all of them are large local growers with a certain degree of popularity.
In addition, some time ago, Tianyu No. 1 was involved in the genetic modification controversy, in which reporters described Tianhe’s marketing as forming a snowball effect.
"The seed salesmen of Tianyu No. 1 are like emerging from the soil overnight. They go from village to village, selling to farmers' homes one after another."
"A certain agent in the town, I earned more than one million yuan in one year.”
In connection with the popularity of Tianhe’s field demonstration, some large planters who were on the sidelines had doubts about Tianyu No. 1’s single-seed sowing method, but they also accepted it. High yield is expected.
I worked tirelessly to participate in the demonstration of the whole process from sowing to harvest.
This moment caused the industry to be alert.
Tianhe's subsequent demonstration meeting attracted a lot of onlookers.
In Xinjiang Province, Mongolia Province, Shandong Province, Heilongjiang Province, Henan Province...
"The yield per mu is 3,000 jins, 2,000 jins, 2,500 jins... Each data continues to stimulate growers His red eyes were full of desire for wealth. "
In Shandong Province, farmer scientist Li Denghai wore a straw hat and a half-sleeved shirt and participated in Tianhe's harvest demonstration like an ordinary farmer.
On the way back, Yu Long, who was accompanying him, looked at the chairman who had been silent for a long time and felt troubled.
After a long time, Li Denghai sighed: "Tianhe Seed Industry has taken the lead!"
"On-site meetings at the seedling stage, on-site meetings in the fields, on-site meetings on the harvest, complete technical tracking services, this is what Tianhe Seed Industry has to offer!" The innovation of He Company not only allows farmers to recognize single-grain sowing, but also provides farmers with knowledge and technology on fertilization and pest control. More importantly, it allows farmers to feel the yield-increasing effect of Tianyu No. 1 on site. "
Yu Long said: "Xianyu 335 is also following the promotion method of Tianyu 1 in the Northeast, and this year it can generally increase farmers' income by 200 yuan."
Thought for a while. , Li Denghaicai said: "In the future, the varieties that will be used to climb the sea will all follow this model."
Yu Long hesitated for a moment, "The yield advantage of Tianyu No. 1 is too great. Will it be possible to steal the chicken but lose the rice?"
Even if it is affected by rust, Tianyu No. 1 has also achieved a yield per mu. The ultra-high yield of 2,000 pounds has almost achieved a reduction in output.
“What are you afraid of? The domestic market is so big that Tianyu No. 1 can’t eat it.”
“Okay, we have also got the hybrid breeding line materials for Tianyu No. 1, and they will be available soon. Conduct hybridization, testing and analysis with existing system breeding lines."
Li Denghai nodded.
The yield advantage of Tianyu No. 1 is too great, and the only formal solution is to improve existing varieties.
But it will take at least six or seven years.
In 1967, Tianhe Seed Industry had already made a lot of money.
Li Denghai is really envious of Tianhe Seed Industry for cultivating such good varieties.
“Who is participating in this year’s Corn Seed Summit from Tianhe Seed Industry?”
"It seems to be Qu Yang."
"Guo Yang is not coming?"
"It seems to be."
Li Denghai frowned, Tianyu No. 1 Although the breeder is named Tianhe Breeding Laboratory, its leader is still Guo Yang. He actually wanted to hear Guo Yang's views on the domestic corn industry.
There seem to be a lot of domestic corn varieties, but if we trace their origins, there are actually just a few. They are all constantly improved and improved, and there are actually very few real innovations.
Thinking of this, Li Denghai dialed a certain number.
……
“Whoever owns 958 will definitely make a fortune this year.”
As the largest operating company of Zhengdan 958, Jingcheng Denong Company has sales outlets nationwide in In the past two years, it has spread all over the country.
Therefore, I feel the oppression brought by Tianyu No. 1 most deeply.
Especially in Henan Province, Tianhe held a huge harvest festival in front of Denong. The 5,500-acre corn planting base was full of harvest scenes.
We even used corn cobs to build various shapes and stages.
It not only attracted many farmers, but also brought many local media and tourists. The scene of growers placing orders was even more crazy.
At the Denong headquarters in Zhongguancun, the capital, general manager Zhang Lei looked at the data compiled from various places and looked unhappy.
As a product manager, he can always show his optimism and confidence in his products on various occasions.
Product managers are leaders. They do not judge whether a product is good or bad by listening to others saying it is good or bad.
Learn to brag with reason. As the saying goes: I would rather believe the three legs of a toad than the mouth of a product manager.
But Tianyu No. 1 is located in the Huanghuaihai Sea, the Northeast, or the other three major corn ecological regions.
Its overall performance completely surpasses Zhengdan 958.
As both a large national variety, Zhang Lei found that the bullishness he boasted about Zhengdan 958 in previous years was easily surpassed by Tianyu No. 1.
How can he brag about this?
Just as he was lost in thought, his son Zhang Yang walked in.
“Dad.”
Zhang Lei came to his senses and asked, “How is the progress of technology procurement?”
"We have purchased several small varieties with strong regional adaptability, but the large regional varieties will have to be auctioned next month, so we come back in advance to prepare." Before."
Zhang Yang also understands his father's situation. Although the Zhang family is still a shareholder of Denong, the controlling shareholder has become Huaguan Technology, a listed company from the Northeast.
"Dad, when I was outside, I heard a lot of information about Tianyu No. 1. Now many manufacturers are in turmoil."
Zhang Lei smiled happily, "Denong Now there are more than 5,000 sales outlets in 28 provinces, municipalities and autonomous regions across the country, and Zhengdan 958 will have no problem maintaining it for another two to three years.”
Zhang Yang remained silent for a moment, maintained? He could feel the pressure. My father was very high-spirited in the past two years, and his all-powerful appearance seems to still be vivid in his mind.
Zhang Lei said: "The most important thing now is to speed up research and development, improve varieties to solve existing problems, carry out micro-iterations, or launch new varieties."
"After finishing this period, Variety procurement, dad, please transfer me to the marketing department, I will be the product manager."
Zhang Lei patted his son on the shoulder, "I have ambition, but I have to ask you a question."
"Dad, tell me."
"If we predict that corn prices will continue to fall in the next five years, rust will become a normal disease in the Huang-Huai-Hai region. At the same time, the country will also promote the large-scale development of standard farmland construction.
Under such circumstances, the company What needs does the developed product need to meet? Which popular product is it targeting? ”
Zhang Yang frowned.
Zhang Lei said: "When you figure it out, I can transfer you to the marketing department."
"Go to get off work. It's been two days since I came back, and I haven't seen you go to Xu. Xiaoxue, you can’t relax when chasing girls.”
Looking at his son who was thinking while walking, Zhang Lei was pleased and also thinking about countermeasures.
Even with Denong’s management level, Zhengdan 958’s product life cycle will begin to decline from now on.
But the market demand for good seeds is always there.
Where is the demand?
In the face of change, a good product manager will find that demand is everywhere, but he must learn to deduce it.
It is necessary to not only solve the problems that arise in current production, but also look forward to problems that may arise in the future.
All of this requires a lot of on-the-spot research.
Only in this way can seed companies survive in the brutal competition.
But the more I thought about it, the more I realized how terrifying the field demonstration was.
It seems that Tianhe has always been at the forefront of the industry.
...
Because of the sensitivity of the rural issues, and because it is also a beneficiary of variety intellectual property protection.
So large breeding companies such as Denghai and Denong generally do not cross the line of the law. At most, they only improve on the basis of varieties.
That is, there are a large number of imitation varieties in China.
At this point, compared with the various dirty tricks of domestic dairy companies, the atmosphere of domestic dairy companies is obviously much better.
But for those illegal seed merchants operating without a license, or small seed enterprises that operate outside the law.
The popular Tianyu No. 1 is a gluttonous feast!
(End of this chapter)